Accents on Technology,

Samsung Electronics pledges to produce more top brand products 
Samsung Electronics Co. on its first 2005 Samsung Analysts Day at Shilla Hotel held on November 3, declared it will become one of the top three electronics firms in the world by 2010 through its eight largest growth engines and the six largest reform programs.

Vice Chairman Yoon Jong-yong:
The company's vice chairman Yoon Jong-yong at the event which was attended by some 300 analysts, institutional investors, and about 100 journalists both domestic and foreign, made public the company's ambitious mid- and long term plans. The vice chairman predicted that the electronics industry will have many changes especially in the areas of price, technology, value-added portions, regions and see new strong firms will emerge in those areas. The current price system is likely to collapse with increases in supply and upgrades in productivity and replacement demand overtaking new demand, which will cut prices.
The convergence of devices, networks and service will destroy the technology wall, he stressed. There also are signs for rapid transfer from solutions to networks, along with the collapse of the value-added portion and with the industry moving to the digital era, Yoon said. The development of technology has made possible the emergence of products with similar functions, price, and quality to bring down the value-added portion attained from turning out core products and brands. The vice chairman said the company will try to secure a competitive edge for its core technologies and brands with the collapse of the value-added portion in an effort to cope with changes in paradigm following the collapse of the four walls.
By 2010, the company will achieve total sales of 115 trillion won a year, double the current annual sales through increases in the number of its products that have top market shares in the world from eight to more than 20. The company will concentrate on working on eight core technologies ranging from memory, high-capacity memory, next generation display, next generation mobile phones, digital TVs, next generation printers, system LSI, among others.
President Lee Ki-tae, Samsung Electronics Information & Communication Division:
President Lee said cell phones will be developed as all-in-one equipment as a hub for all kinds of information and technology equipment with multi-functions concerning all kinds of every day life for the people. He said the core product of the company's brand values amounting to $15 billion is a mobile phone, Anycall and the company will set up its strategy to be a business leader of multi-media and maintain its lead in a number of key areas including technology, design, product quality, and brands. The information & communication division saw its annual sales expand about 25 percent in the past 10 years with sales rising 16 times. This year's sales would be around 100 million units. The world? best and first strategies brought such a success to the company, the division head said.
The division maintained its high profile design and high-tech technology for premium brand and has been able to keep high average sale price for its products and profit. The company unveiled its 8 million pixel camera phone for the first time in the world at the event.

President Hwang Chang-kyu of Samsung Electronics Semiconductor Division:
President Hwang said the division will sell $61 billion worth of products by 2012 and its chip production lines would total 24 in the country with six research lines, the largest in the world and continue to maintain its high-tech chip development technology. He said the IT industry has been changing fast in such areas as mobile, digital, ubiquitous, and convergence by nano technology. Such changes are likely to trigger a "Big bang for chips"with an explosive increase in demand for chips. The market for nano flash memory will grow 15 percent next year. The number of users will also expand from mobile equipment to digital home appliances, automobile and air planes and they will be able to store the entire ?aily life?in the chips by 2010 with the expansion in its capacity and functions.
The chip market has been growing faster than the forecast made in 2002 and so the development of high-tech chips should be made earlier than expected to cope with the growth in its market like the development of 7.2 million pixel CIS, 10-step MCP, fusion memory, and 50 nano 16 giga nand flash, among others.
President Lee Sang-wan of Samsung Electronics LCD Division:
President Lee said the LCD division saw its annual sales expand 20 times in the past 10 years to show that it will be a dominant display equipment in the future in all sizes ranging from 1 inch to 100 inches. The LCD TV market would be big enough to handle 100 million units of the product by 2010. In the past, late starters in the industry would have to follow the early starters to make a profit, which is no longer true now due to high investment required. Early starters like Samsung lead the technology development and market creation and late starters would have to maximize the operation of their existing lines to stay in business. The division will lead all phases of the industry including technology, market leadership, and technology tie-up, and making the Crystal Valley extending from Cheonan to Tangjeong competitive and the competitiveness of the products produced in the complex. By 2010, the division would see its annual sales jump double the current record to $20 billion.
Vice Chairman Lee Yoon-woo of Samsung Electronics Technology Division:
The company was able to rank among the top three in the manufacturing sector and first-rate global firm last year due to its continual research and development by focusing its investment in the digital sector, knowing in advance the industry was moving to the digital age from analogue earlier than its rivals. The company's patent application numbers totaled 1,604 cases last year, to rank the 6th in the world. The company will expand its patent staff from the current 250 to 450 by 2010 so that the company will be among the top three in the world by 2007. The number of R&D staff, which total 16 percent of all employees expanded to 24 percent last year and will be increased to 32 percent by 2010. The MIT Technology Review ranked Samsung in the 16th of 160 companies in the world with intensive R&D efforts. The publication arrived at the rankings based on various factors including R&D expenses. Samsung? investment in R&D expanded 36 percent the 6th largest in the world. The company will continue to invest in its R&D sector to develop new technologies to produce new products that would change the lifestyle of people and make itself a first-rate company in the world. The company will push for reforms in the three vital sectors including technology, personnel, and process for maximum effect in organization and cooperative systems. The company plans to secure core technologies through a corporate culture stressing technology, daring investment in R&D manpower and resources, and effective management of resources.
President Choi Ji-sung of Samsung Electronics DM Division:
The digital media division ranked third in the digital appliances industry in the world in terms of profit margin by recording 3 percent based on production. In the TV market amid falling TV prices, the division recorded the largest increase in sales in the second quarter this year. The company was the top seller of LCD TVs in such European countries as Italy, Germany, and Britain, raising its profile as digital media marketer rapidly.
The digital media division recorded annual sales of $14.4 billion last year, with 84 percent coming from overseas, with products ranging from TV, DVD recorders, MP3 players, home theaters, camcorders, set top boxes, monitors, computers, and to printers, totaling some 7,000 diversified products annually.
The division will create a digital renaissance through a digital revolution in the four key sectors including mobile, home, and printers. The company plans to focus its technology, marketing, and manufacturing experiences for the project as well as concentrating on design and reform and spur global brand marketing effort. By 2008, the division will record $30 billion in annual sales, President Choi predicted.

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